Prepared for City of Parramatta Council
February 2017


MAAS MUSEUM RELOCATION
BUSINESS IMPACTS STUDY

Study Scope Page 3
Study Background Page 4
New MAAS Museum Sites Page 5
MAAS 2015-16 Snapshot Page 6
Economic Impacts of the new MAAS Museum Page 7
Flow on Benefits of the new MAAS Museum to Parramatta Page 11
Economic Impacts from new MAAS Museum Summary Page 13


CONTENTS

STUDY SCOPE
Parramatta City is undergoing a period of transformation
as part of a vision to create ‘Australia’s next great city’
The relocation of Museum of Applied Arts & Sciences
(MAAS) to the Parramatta CBD is part of this vision and
will bring positive benefits in terms of amenity,
employment and economic activity to Parramatta
The new MAAS museum project will be one of a number
of projects planned or underway in the Parramatta CBD
There will also be beneficial trading impacts to the City
of Parramatta and surrounding local business
Council engaged HillPDA to conduct an Economic Impact
Study (EIS) to better understand the nature and extent of
these impacts


New Museum
part of CBD
transformation
Economic
Impacts of new
Museum
Page 3

The relocation of the MAAS Museum to Parramatta as part of the development of an arts and cultural
precinct in Western Sydney was announced by Government in February 2015
Following this announcement and working in conjunction with partners across Government including
MAAS, Infrastructure NSW, Arts NSW, Department of Premier and Cabinet, a multi-agency group led by
Department of Justice was formed to manage the planning for the new Museum, supported by a $10
million investment across two years
Significant work was undertaken to understand the requirements for the new MAAS Museum, and to
develop a list of potential sites in Parramatta for consideration by Government. Two shortlisted sites have
since been announced: The Golf Course and Riverbank
With the preferred site selected, detailed planning work is presently underway
The new MAAS Museum’s construction cost is expected to be around $200-300m*. Construction is
expected to start 2019 and be completed by mid 2022
Planning and building the new MAAS Museum is a long term project, and it is anticipated the new
Museum will be open to the public in 2022
The new MAAS Museum will showcase 40 per cent more of the Powerhouse's current exhibits.






STUDY BACKGROUND
New MAAS Museum Project Overview

* Source: Correspondence with City of Parramatta 1/02/17, for the purposes of our analysis we have assumed a total construction cost of $250m
Page 4

NEW MAAS MUSEUM SITES
Source: Six Maps; SGS Economics and Planning – Evaluation of Macquarie St Sites – Feb 2016
The two shortlisted sites for the museum
include the following:
The Golf course site located at the former
Parramatta Golf Club (which ceased
operation in April 2015). Situated along
Park Parade, Parramatta the site spans
across 14.4 hectares and forms part of
Parramatta Park . The site is currently
managed by the Parramatta Park Trust
The Riverbank site is located at 30B-46
Phillip Street and 47 Smith Street,
Parramatta. The site adjoins the
Parramatta River and is currently owned
by the City of Parramatta. The vast
majority of the site is occupied by the old
David Jones car park, with businesses
fronting Phillip Street. Public access,
including a cycleway, is provided along the
riverfront



Page 5

Current Audience, Staff Numbers and Revenue

Source: MAAS Annual Report 2015-16
* The Powerhouse Museum visitation relative to the overall MAAS visitation was used as a proxy to derive the estimate of commercial revenue for Powerhouse
Museum in 2015/16
MAAS 2015-16 SNAPSHOT
Page 6
Most visitors to the
Powerhouse Museum
are from Sydney, while
most tourists are from
within NSW.
54%
15%
22%
10%
Sydney
Regional
Interstate
International
The Powerhouse Museum saw
nearly 570,000 visits, which was
33% higher year on year Origin of Visitors
The Powerhouse Museum
currently employs 204*
(excluding casuals)
$6.1m* - Commercial Revenue
from the sale of goods and
services

ECONOMIC IMPACTS OF THE NEW MAAS MUSEUM
Notes on methodology:
•As advised by the of City of Parramatta 1/02/17
•HillPDA calculates that every million dollars of construction generates 2.35 full time positions over 12 months directly in construction on site. Source: Hill PDA and ABS Australian
National Accounts: Input-Output Tables 2012-13 (ABS Pub: 5209.0).
•Multipliers derived from the 2012/13 Australian Input-Output tables (ABS Catalogue no. 5209) are used to estimate the number of construction workers and the direct and indirect
output associated with the museum construction
•An estimated spend of $50 per construction worker per week within the Parramatta CBD is assumed during the construction period (in comparison, Urbis’ 2013 Office Worker
Spending Survey found office workers spent an average of $76 per week on food and drink)
Page 7
Construction Opening of new
MAAS Museum
Ongoing
Operation
$250m – estimated
construction cost*1
An estimate of 588 job
years directly generated
during construction
Approximately 2,320 job years
generated during the period of
construction (including
multiplier impacts)
$803m– estimated contribution of
new MAAS museum to economic
activity (direct and production
induced effects)
$1.5m – estimated annual
spend by construction
workers in Parramatta CBD
during construction period

ECONOMIC IMPACTS OF THE NEW MAAS MUSEUM
Notes on methodology:
Sources:
* Parra Council Media release 11 April 2016
** MAAS forecast
•MAAS Museum revenue: The Powerhouse Museum visitation relative to the overall MAAS visitation was used as a proxy to derive the estimate of commercial revenue for
Powerhouse Museum in 2015/16 (source: MAAS Annual Report 2015/16)
•HillPDA estimates the commercial revenue for the new MAAS museum in 2022 to be around $10m. This assumes a 76% increase to the Powerhouse Museum Commercial
Revenue in 2015/16 in line with Council’s assumption of 76% increase in attendance. The exception is leased operations and venue hire revenue that is assumed to remain
constant at 2015/16 levels (~ $810,000 pa). Source: MAAS Annual Report 2016.
•Museum visitors will be spend an average of $58 on food, beverages and retail goods within the Parramatta CBD. This is the weighted average spend (assuming a 50% capture
to Parramatta CBD) of all domestic day visitors, domestic overnight and international visitors as reported in the 2009/10 Regional Tourism Profile, the 2015 Regional Tourism
Profile for Sydney (www.destinationsw.com.au) and the MAAS Annual Report 2015/16.
Page 8
Construction Opening of new
MAAS Museum
Ongoing
Operation
The new MAAS museum
is estimated to attract 1
million visitors per year*
The new MAAS museum
will provide up to
260 jobs**
$10.1m – Museum
Revenue from
admissions and sale of
goods and services.
$42.5m – More visitor
spend on food, beverages
and retail goods in
Parramatta CBD

ECONOMIC IMPACTS OF THE NEW MAAS MUSEUM
Notes on methodology:
An estimated average salary of $70,000 has been assumed for 260 employees. Source: MAAS Annual Report 2015-16; Phone Interview conducted with Powerhouse Museum
on 6/02/17
Value added of an industry refers to the value of outputs less the costs of inputs. It also measures the contribution that the industry makes to the country’s wealth or gross
domestic product (GDP)
Industry Value Add was derived from the IBIS World Reports for Arts and Galleries (Sep 2014). A 37% increase was applied to the Industry Value Added. This is in line with
MAAS’s above industry average salaries (as reported on the MAAS Annual Report 2015-16)
Page 9
Construction Opening of new
MAAS Museum
Ongoing
Operation
The new MAAS museum will
support a combined salary
contribution of $18.2m every
year
$22.5m– estimated industry
value added (contribution to
local GDP) from the new
MAAS museum every year

ECONOMIC IMPACTS OF THE NEW MAAS MUSEUM




Notes on methodology:
•HillPDA applied a conservative 10% year on year increase to the estimated visitor spend generated at the new MAAS (compared to the Powerhouse Museum’s annual growth
rate of 14% from the period 2013 to 2016).
•HillPDA applied a 1% growth year on year on visitor spend to surrounding local businesses (this is in line with average annual growth in retail spend).

Page 10
Construction
Opening of new
MAAS Museum
Ongoing
Operation
$0
$10
$20
$30
$40
$50
$60
$70
$80
Visitor Spend
$(m)

Year
Visitor Spend to Surrounding Local
Businesses
Visitor Spend at new MAAS
Museum
Visitor Spend Generated from New MAAS Museum

FLOW ON BENEFITS OF THE NEW MAAS MUSEUM TO PARRAMATTA
Flow on
Benefits
URBAN
RENEWAL
REPUTATIONAL
BENEFITS –
Education and
Culture
SYNERGY OF
LAND USES JOB SKILLING
AND TRAINING
INVESTMENT
STIMULUS
Page 11

FLOW ON BENEFITS OF THE NEW MAAS MUSEUM TO PARRAMATTA
Flow on Benefit Commentary
Urban Renewal Future urban renewal projects such as the new MAAS Museum are critical to the sustainability and vitality
of the City of Parramatta. The Museum will activate the precinct, with the potential to draw up to one
million visitors a year into the area and significantly boost tourism to Parramatta. This in turn will fuel
economic vibrancy.
Reputational Benefits –
Education and Culture
This project will help to develop an arts and cultural precinct in Parramatta and will act as a catalyst for the
educational, technological, economic and cultural revitalisation of Parramatta. This project will go some
way to address the issue of Parramatta’s lagging job growth relative to other parts of the city, through
attracting and keeping high quality knowledge industries where future jobs growth is likely to be strongest.
The Museum’s focus on design, technology and innovation aligns with and will help promote Parramatta’s
ambition to be Australia’s ‘leading Smart City’.
Synergy of Uses The Museum will be integrated as part of the wider Riverbank precinct and will form part of Council’s vision
to deliver a world-class cultural, entertainment, retail and residential hub which will be easily accessible
and enjoyed by the community.
Job Skilling and Training

The Museum has the potential to support Council’s Parramatta Skills Exchange (PSX) initiative (i.e. providing
industry-based opportunities for young, unemployed and under-employed workers). As such the Museum
can provide participants with opportunities to work in the museum and receive on the job training.
Investment Stimulus Where a significant property investment decision has been made it is generally viewed as a strong positive
commitment for the local area. Such an investment can in turn stimulate and attract further investments.
As such the new MAAS Museum would increase the profile of this area and in so doing increase the
financial feasibility of future development, potentially acting as a catalyst on surrounding sites. Surrounding
sites and residential are likely to benefit from an increase in land value due to improved amenity, job
opportunities and profile of the area.
Page 12

Construction of the Museum will generate 2,320 job years directly and indirectly during construction and contribute
$803m of economic activity (direct and induced multiplier effects)
An estimated $1.5m spend from construction workers in Parramatta CBD is anticipated during the construction period
The Museum has the potential to draw up to one million visitors a year
Post construction the Museum will provide 260 new jobs in Parramatta which equates to a combined salary contribution
of $18.2m every year and an additional $22.5m value added contribution to the economy each year
The Museum is estimated to generate $10.7m of commercial revenue within the first year of operation
Businesses in Parramatta CBD are expected to enjoy an increase of $42.5m revenue each year from Museum visitors
The Museum will help develop an arts and cultural precinct in Parramatta and will act as a catalyst for the educational,
technological, economic and cultural revitalisation of Parramatta
The City of Parramatta will benefit from urban renewal, investment stimulus and enhanced livability
The Museum will form part of Council’s vision to deliver a world-class cultural, entertainment, retail and residential hub
which will be easily accessible
The Museum provides various opportunities through the synergy of land uses and has the potential to support the
Parramatta Skills Exchange scheme


SUMMARY OF ECONOMIC IMPACTS FROM NEW MAAS MUSEUM
Page 13

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